Solium Capital and Westport Fuel Systems can add profound upside to your portfolio. This is because the optimistic growth outlook for their profitability and returns make their high-growth potential appealing relative to their peers. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good additions to your portfolio.
Solium Capital Inc. (TSX:SUM)
Solium Capital Inc. provides cloud-enabled services for administration, financial reporting, and compliance related to equity-based incentive plans. Started in 1999, and currently headed by CEO Marcos Lopez, the company employs 611 people and with the company’s market cap sitting at CAD CA$622.91M, it falls under the small-cap stocks category.
SUM’s projected future profit growth is an exceptional 52.85%, with an underlying 40.09% growth from its revenues expected over the upcoming years. An affirming signal is when net income increase also comes with top-line growth. Even though some cost-reduction initiatives may have also pushed up margins, in the case of SUM, it does not appear extreme. Moreover, the 55.13% growth in operating cash flows shows that a decent part of earnings is driven by robust cash generation from operational activities, not one-off or non-core activities. SUM’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Should you add SUM to your portfolio? Other fundamental factors you should also consider can be found here.
Westport Fuel Systems Inc. (TSX:WPRT)
Westport Fuel Systems Inc., a transportation technology company, provides low-emission engine and fuel system technologies utilizing gaseous fuels in North America, Europe, Asia, and South America. Started in 1995, and run by CEO Nancy Gougarty, the company provides employment to 1,751 people and with the company’s market cap sitting at CAD CA$478.61M, it falls under the small-cap stocks category.
WPRT is expected to deliver an extremely high earnings growth over the next couple of years of 65.64%, from the current earnings level of $-84.78M. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 10.03%. WPRT’s impressive earnings outlook makes it a worthy company to spend more time to understand. Want to know more about WPRT? Take a look at its other fundamentals here.
First Majestic Silver Corp. (TSX:FR)
First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver projects in Mexico. Formed in 1979, and now led by CEO Keith Neumeyer, the company employs 3,580 people and with the company’s market capitalisation at CAD CA$1.24B, we can put it in the small-cap group.
FR’s projected future profit growth is an exceptional 70.72%, with an underlying 38.82% growth from its revenues expected over the upcoming years. An affirming signal is when net income increase also comes with top-line growth. Even though some cost-reduction initiatives may have also pushed up margins, in the case of FR, it does not appear extreme. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 2.93%. FR’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Interested to learn more about FR? Check out its fundamental factors here.
For more financially robust companies with high growth potential to enhance your portfolio, use our free platform to explore our interactive list of these stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.